Lending Club Reviews And Things You Should Know!
Big banks like Bank of America and Wells Fargo make most of their profit from mortgages and credit cards (loans to individuals). After all, the interest rates are extremely steep and always based on fixed payments. To avoid bank’s high rates, many borrowers choose to get peer-to-peer lending with fewer restrictions and easy-to-get loans. And that’s where Lending Club comes to the recuse. Let’s take a look at Lending Club reviews to know more about it.
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Lending Club Reviews
Lending Club is an online peer-to-peer lending platform that began in 2007. The platform aims to bring borrowers and lenders closer, in order to create an open lending environment. Investors (lenders) lend money directly to the borrowers through the website. If it’s a short-term loan what you are looking for, then you should check out LendUp Reviews to know more.
What’s the Borrowing Process for Lending Club?
Before the borrowing process begins, Lending Club runs a background check on the applicants. One can apply for the loan online! However, the applicant must have a FICO score of 600 or above. Thus, Lending Club rejects more than two-third applications regularly. And only a few people are able to get the approval as a part of Lending Club’s risk management. In case you are struggling to get a loan because of your credit score, then you can check out OneMain Financial Reviews to learn how to get a loan with a bad credit score.
Any borrower can apply for a loan, the amount ranging from $1,000 to $40,000. Lending Club decides the interest rate based on the borrower’s credit rating. When you compare the rates offered at Lending Club, they are highly competitive in comparison to traditional banks. Moreover, the borrowers with good credit scores get even better APR. If you have a bad credit score, then you should know How To Improve Credit Score Immediately?
However, the loan term also plays a crucial role in deciding the interest rate to be levied. The loans offered here are unsecured lines of credit and are similar to credit card loans. And similar to credit cards, all defaults are reported to the three credit rating agencies (Equifax, TransUnion and Experian).
What are the Lending Club Investing Requirements?
In case a person wants to invest, they must satisfy the following conditions:
- A person must be at least 18 years of age with a valid social security number.
- They must have an annual gross income of a minimum $70,000 and net worth (excluding home, home furnishings and cars) of minimum $70,000. However, there are different net worth requirements for the residents of Kentucky and California.
- They should be a resident of the following states: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia and Wyoming.
- Lending Club investors are allowed to make a deposit of not more than 10% of their net worth.
- A person requires an initial deposit of $1,000 to start investing.
Lending Club is undoubtedly one of the biggest and most successful Peer-to-Peer lender in the country. With a long track record of giving amazing returns to the investors, Lending Club proves to be a great choice. For borrowers looking for easy loans, the platform is the perfect option if they don’t want the bank’s high-interest rates. This proves to be a boon for small start-ups and business owners looking to grow. If you are looking for other means than peer-to-peer lending, then here are The 7 Best Short-Term Investment Plans For You!